1. Welcome from Matrix Solutions - Financial Clarity · Marketing, Fidelity Hutong Beijing 20 minutes Client Overview Presentation ... (D2C) business will explode. Charges will be

Matrix Solutions, 55 New Oxford Street, London, WC1A 1BS

London Financial-Clarity Breakfast Seminar 2013

Ian Beaumont

Chief Executive Officer Matrix Solutions 8.30am – 8.45am

1. Welcome from Matrix Solutions


This Morning’s Agenda

Time Event Speaker Location Duration Notes

8.00am Doors Open Aqua-Shard 32nd Floor, 31 St Thomas Street

8.00am Breakfast / Registration Hutong Shanghai 30 minutes Pastries & Hot Breakfast

8.30am Welcome from Matrix Solutions

Ian Beaumont, Chief Executive Officer, Matrix Solutions

Hutong Beijing 15 minutes Update on Market Intelligence

8.45am Market Insight Session Bella Caridade-Ferreira, Director, Fundscape

Hutong Beijing 15 minutes UK Industry Overview

9.00am Financial-Clarity Case Study

James Harris, Director Wholesale Marketing, Fidelity

Hutong Beijing 20 minutes Client Overview Presentation

9.20am Coffee Break Hutong Beijing 10 minutes Teas and Coffees served

9.30am Product Update Session Ian Beaumont / Richard Terblanche Hutong Shanghai 30 minutes Latest functionality

10.00am Financial-Clarity International

Diana Mackay, Founder, Mackay Williams

Hutong Beijing 15 minutes Introduction to Cross border fund flows

10.15am Nucleus Case Study David Ferguson, CEO, Nucleus Hutong Beijing 15 minutes Client Overview presentation

10.30am Questions Questions to all Speakers Hutong Shanghai 15 minutes General Q&A session

10.45am Close / Coffee Break Hutong Beijing 15 minutes Coffee break for Usergroup attendees / Departure for others

11.00am 1 hour optional user-groups

David Lovell / Guy Edsall / Richard Terblanche

Private Dining Rooms / Dickens Suite

Hutong Dining Rooms / London Bridge Hotel - Dickens Suite


New clients for 2013


2013 Financial-Clarity Survey

• Over 600 sales and marketing professionals using FC dashboards • Over 130 respondents to our survey

• More than 70% use Financial-Clarity daily or weekly

• Highest usage among firms with Total-Clarity CRM integration

• 70% of users are on the sales side with growing numbers in client

facing sales roles, marketing and product strategy


Recent Client Feedback

“When you weigh up the cost against the sales and marketing benefits, Financial-Clarity is a no brainer. We are here to grow our franchise and this is the ideal tool.”

Top 10 Sales Director

“Very happy with the Total-Clarity upgrade. I used to do this manually. Now I just search and pull in the details. It has saved a lot of time and hassle and has definitely made a huge difference to us!”

Top 20 CRM Manager

“The Sales Director just told me Clarity has

transformed the way they do business” Industry Consultant

“Based on all the analysis, there is a clear winner - Matrix”

RFP verdict – Top 10 Sales Director

“I’m not surprised you have 100% renewal

rates” Top 10 Marketing Director

“Why have we taken

so long to get this??” Sales Manager

“This is going to tell us

about firms we’d never

heard of before. “ Top 20 Sales Manager

“The improvement over our previous

market insight is a big step forward but the

added CRM capabilities/integration makes

that step massive” Top 10 Sales Director

“You should be applauded for your client interaction. In the last year we have used webinars, face to face meetings, web-exs and telephone calls to educate the team – great customer service.”

Regular FC Field Sales User “What I like is that you don’t just provide

data, you provide solutions to business

problems.” L&P COO


What is Financial-Clarity?


Latest Innovations in Financial-Clarity

Q1 2013 Q2 2013 Q3 2013 Q4 2013

• First White-label version of MyLocalAdviser with Skandia.

• Launch of Financial-Clarity International Trial.

• Platforum Tie-up.

• Partnership with Experian to develop Consumer Profiling Application.

• Launch of MyMarketAnalysis for Advisers.

• Launch of Life & Pensions Trial.

• Launch of Sales Structure Tool.

• Total-Clarity 2.2.

• Launch of FC Consumer Profile.

• New collaboration features.


• Consumer profile focus – continuous dashboard

improvements

• Uniform look through of L&P, Platform and DFM propositions

• Total-Clarity integration refinements for Salesforce.com

• Improved integration with other CRM systems

• Full launch for Financial-Clarity International

• Your ideas - user group, survey & Customer Services feedback

What’s next for Financial-Clarity in 2014?


Meet the Team


Our CSR Strategy

We now sponsor over 60 children


Bella Caridade-Ferreira

Director Fundscape 8.45am – 9.00am

5th Annual Financial-Clarity Breakfast Seminar 2013

2. Fundscape Market Insight Session

Bella Caridade-Ferreira, MD, Fundscape Financial-Clarity Seminar, London, 31st October 2013

Impact and unintended consequences of RDR on

the UK

Pre-RDR predictions

Advice will become the preserve of the wealthy. A significant advice gap will open up.

Advisers will prune their businesses of unprofitable clients (or those unwilling to pay).

Even a proportion of mass-affluent /affluent are expected to be unwilling to pay for advice.

As a result of the three points above, direct-to-consumer (D2C) business will explode.

Charges will be driven down for fund managers and platforms.

Investment solutions will expand and passive business (trackers, ETFs) will grow exponentially.

Increased use of packaged solutions (DFMs, model portfolios, FoFs)

Q1 2013 gross sales marginally higher than Q1 2012: + +1%

Aggregation: platforms +12%, L&P: -5.2%, FMG: +7%

Direct-to-consumer business up by 32%

Bank business down by 19%

IFA business down by 5%

IFA numbers down from just over 30,000 in July 2012

to 26,563 in July 2013

The jury is still out, but in Q1…

Source: Matrix Solutions Financial-Clarity database

H1 2013 gross sales considerably higher than H1 2012: +28% Aggregation: platforms +34%, L&P: +40%, FMG: +18%

Direct-to-consumer business up by 68%

Bank business up by 5%

IFA business up by 20%

Employee benefit consultants up 80%

Adviser numbers starting to creep up and are 27,607 in

Sept 2013

…However, H1 is looking better


…Context


33.4%

14.6%

5.4% 1.3% 2.3%

£0

£5,000

£10,000

£15,000

£20,000

£25,000

IFA WM D2C Bank EBC

2012 2013

FM39.4%

L&P14.0%

Platform46.6%

0%

20%

40%

60%

80%

100%

2011 2012 YTD 2013

Direct L&P Platform

Q3 - hot of the press!


Platforms account for 54% of gross flows in Q313

Gross new sales for Financial Advisers, WMs, and EBC



Another strong quarter for advised retail.

Gross new sales for Financial Advisers, WMs, and EBC



YTD numbers for customer-facing channels are all up… but some are more up than others

Gross new sales for FAs, WMs, EBCs comparing Jan-Sept 2012 to Jan-Sept 2013

…Context


33.4%

14.6%

5.4% 1.3% 2.3%

£0

£5,000

£10,000

£15,000

£20,000

£25,000

IFA WM D2C Bank EBC

2012 2013

FM39.4%

L&P14.0%

Platform46.6%

0%

20%

40%

60%

80%

100%

2011 2012 YTD 2013

Direct L&P Platform

What’s changed?

OR

There may be trouble ahead…

Advice in the UK Pre-RDR advice model

WM Private banks High-end IFAs

Mass affluent

WMs IFAs

Banks

Retail IFAs Banks

* Fundscape estimates

Post-RDR advice model

HNW WM Private banks High-end IFAs

Retail

HNW

WM Private banks High-end IFAs

Mass Affluent

IFAs Banks Retail

Retail Zilch

~5-10% of UK

population*

~10-15% of UK

population*

Future of retail?

OR

Known and unknown unknowns

The clean and superclean share-class debate

Aggregation and/or distribution

Simplified and/or retail advice – the advice gap?

Investment propositions and fund concentration

Passive v actives

Competing products

Q3 – hot off the press!

Passives are up 42% on like-for-like sales in 2012.

Gross new sales for Financial Advisers, WMs, EBCs, D2C and Banks/BS



ETFs are starting to make a come back - flows are 17% higher than 2012




But active funds are also kicking butt – sales are up 54% YOY.





Multi-manager funds are growing more slowly: up 27% YoY




ITs the largest gainers: up 93% YOY


Thank you

Bella Caridade-Ferreira, MD

[email protected] + 44 (0)20 7720 1183

mailto:[email protected]


James Harris

Director Wholesale Marketing, Fidelity 9.00am – 9.20am

5th Annual Financial-Clarity Breakfast Seminar 2013

3. Financial-Clarity client case study

Getting to know you

James Harris Head of Retail Marketing

What I’m going to cover

What are we trying to achieve?

The journey

Some lessons

35

I realise you’ve not come to listen to me…

36

What are we trying to achieve?

Drive firm level insight

Inform our segmentation strategy

Inform our contact Strategy

37

Know your clients

38

Source: client numbers and firm concentration Financial clarity. Numbers are indicative.

FIL Confidential Information

20,000+ advisers

21 direct consumer

businesses

600+ wealth manager firms

16 major platforms

% of Sales Sales Value No. of Outlets

50% £30,866,347,762 370

80% £49,386,156,419 1835

90% £55,559,425,972 3271

Single intermediary view (with walls)

39

Insight - market share and sales performance

• IFA share improved from 14% to 15%

• AM share improved from 15% to 17%

40

14%16%

13%15% 15%

16% 17% 17% 18%

28%

16%

27%

13%

18%

14%13%

23%

2%

10%

27%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0

100

200

300

400

500

600

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

IFA Asset Manager Insurance Companies Platform Unallocated

FIL'

s sh

are

SB S

ale

s (£

Mn

)

Channel-wise Quarterly SB Sales and FIL's share

FIL SB sales FIL share of channel (%)

*

14% 16%

14% 16%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0

200

400

600

800

1000

1200

1400

Q4 Q1 Q2 Q3

Total Market

Sector sales and FIL's share

FIL sales

FIL share of channel (%)

Sale

s (

£ M

n)

FIL

’s s

hare

12%

18%15% 16% 18%

13%19%

£1.2 Bn

£0.6 Bn

£0.9 Bn

£0.7 Bn

£0.4 Bn £0.4 Bn

£0.2 Bn

0

200

400

600

800

1000

1200

1400

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total SB

Sales

FIL SB Sales

Total SB

Sales

FIL SB Sales

Total SB

Sales

FIL SB Sales

Total SB

Sales

FIL SB Sales

Total SB

Sales

FIL SB Sales

Total SB

Sales

FIL SB Sales

Total SB

Sales

FIL SB Sales

City Scotland South West North South East West Midlands East Midlands

Tota

l Sal

es

(£ M

n)

Region-wise Sales of Strategic Bonds during the last one year

IFA % (Left Axis) Asset/Wealth Manager % (Left Axis) Other % (Left Axis)

FIL SB as % of Total SB (Left Axis) Total SB sales (£ Mn) (Right Axis)

Insight- regional sales analysis

41

4% 5% 6%5% 10% 6% 5%

£26 Bn

£14 Bn£13 Bn

£11 Bn

£6 Bn £6 Bn

£4 Bn

0

5000

10000

15000

20000

25000

30000

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total Sales

FIL Sales

Total Sales

FIL Sales

Total Sales

FIL Sales

Total Sales

FIL Sales

Total Sales

FIL Sales

Total Sales

FIL Sales

Total Sales

FIL Sales

City Scotland South West North South East West Midlands East Midlands

Tota

l Sal

es

(£ M

n)

Region-wise Sales of the Total Fund Market during the last one yearIFA % (Left Axis) Asset/Wealth Manager % (Left Axis) Other % (Left Axis)FIL as % of Total (Left Axis) Total sales (£ Mn) (Right Axis)

Total UK Funds Market View*

Not Selling FIL Funds

IFA Count 4 1%

Mkt. Sales/Q £55 Mn 15%

sales/Q > £2.5 Mn FIL Sales/Q £0 Mn 0% Selling FIL sector

IFA Count 37 5% IFA Count 26 4%

Mkt. Sales/Q £289 Mn 79% Selling FIL Funds Mkt. Sales/Q £180 Mn 49%

FIL Sales/Q £49 Mn 81% IFA Count 33 5% FIL Sales/Q £49 Mn 81%


FIL Sales/Q £49 Mn 81% NOT Selling FIL Sector

IFA Count 7 1%


Not Selling FIL Funds FIL Sales/Q £0 Mn 0%

IFA Count 49 7%

All IFAs 0 < sales/Q < £2.5 Mn Mkt. Sales/Q £12 Mn 3%

IFA Count 709 100% IFA Count 302 43% FIL Sales/Q £0 Mn 0%

Mkt. Sales/Q £366 Mn 100% Mkt. Sales/Q £77 Mn 21%

FIL Sales/Q £60 Mn 100% FIL Sales/Q £11 Mn 19% Selling FIL Funds

IFA Count 253 36%


FIL Sales/Q £11 Mn 19%

sales/Q = 0

IFA Count 370 52%


FIL Sales/Q £0 Mn 0%

AM

Contact strategy - targeting trees

Target Group

42

Contact strategy – how do we differentiate?

43

Campaign Driven - all accounts: targeted according to holdings or preference

Service - all accounts

Top X accounts

Service & campaign +

Top Y accounts

Service & campaign + +

Top Z accounts

Engagement driven by

audience High value accounts

• Greater accessibility

• Greater Insight

• Bespoke marketing support

• Product development

• Pricing

FIL Confidential Information

Our approach

44

Agree business objectives

• A tiered client and prospect model

Segmentation design Define segment service model

Client experience design

• Agree common customer experience

• Agree experience differentiators

Finalise contact strategy Track & inform

• Agree Segmentation criteria (quantitative & qualitative)

• Business & sales

• NPS / ORC

• Sales force

• Impact assessment and prioritisation

• Implement plan

• Tool development

• Service structure - Key accounts, Campaign team etc

Lessons learnt

Strong governance and ideally your own data expert is key if integrating own data

Data education – nothing’s perfect!

Mandate use

It’s not just about sales…

It doesn’t stop on delivery

– Power users

– Closed loop

It’s a tool, not the answer

45

46



Teas and Coffees available in

the Hutong Shanghai area

4. Coffee Break



Ian Beaumont


5. Financial-Clarity Product Update


• Technology upgrade – faster, shared bookmarks and notes, IPAD user experience

• Sales Structure Tool – allowing daily tweaks to teams and structures

• Total-Clarity 2.2 Salesforce.com integration

• Financial-Clarity Consumer Profile

Product Overview – New Developments


Platforms L&P

L&Ps WMs IFAs L&Ps WMs

Platforms L&P Wholesale

channels

D2C

platforms

Primary

business

channels Banks

Investment Universe (OEICs, SICAVs, ITs, ETFs, Shares, etc..)

Investors

IFAs

Experian

D2C

Platforms Banks

Consumer Profile Structure


Sales Structure Tool


Diana Mackay

Partner MackayWilliams


6. Financial-Clarity International

The where’s and how’s of business success outside the UK

Diana Mackay, CEO, MackayWilliams LLP

for Financial Clarity International, October 2013

In search of European opportunity

Agenda

1. Where, what and how big?

2. Ingredients of success and who

gets it right!

3. A quick word about RDR

outside the UK.

In search of wider opportunities

[Investors] are turning,

above all, to foreign fund

houses because of their

stability and transparency

of information

Insurance fund selector, Spain

Where are the biggest opportunities?

Cross-border portion of total AUM (€bn)

Data source: Financial Clarity – International, institutional and retail sales via third party channels from 23 cross-border

groups

CAGR data calculated over ten-year period to end-2012

Source of cross-border assets by region (€bn)

Cross-border assets are growing at a much faster rate than domestic:

CAGR of domestic groups – 4.2%

CAGR of cross-border groups – 13.4%

Where are the biggest asset pools?

Source of cross-border assets by country (%)

Data source: Financial Clarity – International, institutional and retail assets via third party channels from 23 cross-border

groups

Where are the biggest sales opportunities?


groups

Source of cross-border net sales by country (%)

What are investors buying from cross-border groups?


groups

Net sales of cross-border funds by sector (%)

Agenda



gets it right!

What does it take to get to get noticed

The most important area

for innovation is the

relationship between the

fund manager and the

distributor. It will be the key

to success in the future

Fund of Fund selector, Sweden

Ticking all the boxes to tickle selector appetite

Product Quality

Brand

Price/Cost

Sales/Acc Mgt

Marketing/Comm

Client Service

Driver

1

2

3

4

5

6

2005 2006 2007 2008 2009 2010 2011 2012

Data source: Fund Buyer Focus

Critical ingredients

1. Segment your client base.

Know who you want to sell to.

2. Differentiate your offering from

that of your competitors.

3. Understand your client’s

business and demonstrate that

you do.

4. Inform by delivering accurate

and up-to-date materials.

5. Transparency in all things, but

particularly portfolios and

pricing.

Who gets it right?

Data source: Fund Buyer Focus

Agenda



gets it right!

3. A quick word about RDR

outside the UK.

The ripples of RDR across Europe

The repercussions of RDR

in the UK are clearly going

to change the wider

industry on a fundamental

level.

Wealth adviser, Netherlands

Impact of regulation and local initiatives across Europe

RDR Complete

commission

ban

Adviser quality

control rules

New breed of

low cost

funds

MiFID 2

Transparency

regime and

court case

Thank you!


David Ferguson

Chief Executive Officer Nucleus 10.15am – 10.30am


7. Client Overview Presentation

Platform

s & some other

stuff.

Way, way back in 2007…

Distributors

Supporting

transactional

advice

Product-led

Paid for by fund

managers

Facilitators

Supporting

service-led advice

model

Customer-led

Paid for by

customer

Margins

98% of adviser firms have < 10

advisers and they look after 87% of

AUA

23% of adviser firms have 2-5 advisers

and >£10m AUA

- 65% of these have >£20m AUA

47% of adviser firms have <£10m AUA

- almost two thirds of these have <£5m!

50% of adviser firms generate <£1m of

new inflows per annum

- but 25% generate >£3m

0 1 2 4 8 16 20 25

Wrap

Fund supermarket

Q3 2012

Gross inflows Wrap v fund supermarket

Q2 2013

Wrap

Fund supermarket Source: Fundscape. Platforms into IFA market. Inflows over each period.

Q3 2012

Net inflows Wrap v fund supermarket

Q2 2013

2013 asset growth % in H1

0 5 10 15 20 25 30 35 40

Transact

Fidelity

Skandia

Cofunds

Std Life

Nucleus

Ascentric

Axa

Source: Platforum. Platforms into IFA market.

P2P re-registration

See FCA GC13/7

Share class conversions

CROS

S SUBSID

Y

RACE

TO THE

BOTTOM



8. Question & Answer Session



Ian Beaumont


9. Close from Matrix Solutions



1. Data Integration, CRM & Salesforce – David Lovell

2. Financial-Clarity Dashboards – Guy Edsall

3. Financial-Clarity International – Richard Terblanche

10. User-group sessions from 11am – 12.00pm

Documents

1. Welcome from Matrix Solutions - Financial Clarity · Marketing, Fidelity Hutong Beijing 20 minutes Client Overview Presentation ... (D2C) business will explode. Charges will be